On November 7, 2019, Beijing Kerui North Technology Development Co., Ltd. (hereinafter referred to as "Kerui North") obtained the non-objection letter from Shenzhen Stock Exchange (SZSE) declaring that the non-public issuance of exchangeable bonds of Kerui North in 2019 met the transfer conditions of SZSE, thus granting the approval for its non-public issuance of exchangeable bonds with a face value of no more than RMB 170 million. The bonds issued can be exchanged for the A shares of Beijing Creative Distribution Automation Co., Ltd. (CREAT) (Stock code: 002350.SZ) held by Kerui North, with a validity period of no more than three years. The exchangeable bonds will be listed and traded on SZSE and the exchanged A shares of CREAT will continue to be traded on SZSE.
Founded in March 1999, Kerui North is mainly engaged in overseas investment in the real industry, and its business scope covers power distribution related products such as switches, prefabricated substations, automation products, electrical & electronic products, and accessories, as well as new energy products such as solar thin film cells and modules. Its controlling subsidiary, Beijing Creative Distribution Automation Co., Ltd. (CREAT), listed on the SME board of Shenzhen Stock Exchange in February 2010, is mainly engaged in the research and development, production and sales of power distribution and control equipments. Its main products include switches, prefabricated substations, automation products, electrical & electronic products, accessories and other automated power distribution products.
As the legal counselor for this issuance, the DeHeng team, led by partner Zhao Yonggang and with primary support from lawyers, Li Ting and Zhao Taoli, provided professional, high-quality and comprehensive services for this non-public issuance. They conducted legal due diligence, provided legal opinions, drafted and reviewed relevant legal documents to ensure the legality and compliance of the issuance.